[Update]: Crytek Denies New Xbox Development Rumors

Update: Crysis 2 developer Crytek has officially denied that it's making games for the next Xbox system or has any info on when Microsoft plans to announce it.

IGN has an official statement from the company that reads, in part: "Relating to the recent rumours, Crytek do not have any next generation hardware from Microsoft, nor do we know when Microsoft may announce future hardware or what that hardware will entail."

In an age when companies usual just tell you, "We don't comment on rumors or speculation," it's interesting that Crytek would spell it out so clearly. Then again, it's not like Crytek won't be working with Microsoft and Sony when those console makers start talking to developers about their next systems.

[Original Story]: Gaming website Videogamer.com has published a report stating that Microsoft is going to show its next-generation Xbox hardware at E3 2012, citing a source at Crysis 2 developer Crytek.

According to a "high-ranking industry source at Crytek," Videogamer.com claims "The Crysis 2 developer says that Microsoft will announce the existence of a new Xbox within the next 12 months, hinting that a likely E3 2012 reveal. Crytek believes that Microsoft will announce and launch its new machine ahead of rival Sony, though the developer is also investing resources into next-generation PlayStation development."

Although the technical specifications of the new Xbox are not final, the Crytek source told the site that it's proceeding with development using Microsoft DirectX 11. Some of DirectX 11's impressive graphical features were shown in Epic's Samaritan demo shown at this year's GDC.

The story also said that Crytek UK (formerly known as Free Radical) is working on TimeSplitters 4 for next-gen consoles (including the next Xbox), using the CryEngine 3. The game will reportedly place an emphasis branching paths and "sandbox-style gameplay."